What to Look For in Yourself and a Franchisor
The thought of being sold a franchise is a big paralyzer for most people. They fear and liken it to feeling like attending a high-pressure timeshare presentation. This concern is understandable, but it’s important to recognize that reputable franchisors approach the process differently.
Successful franchisors aren’t just looking to sell; they are searching for the right partners who possess the qualities and skills necessary to thrive in their business model. By recognizing these traits and understanding the franchisor’s perspective, you can ensure that you’re making a smart investment in your future.
The Importance of Selectivity
A franchise system only works if the franchisor carefully selects individuals who are likely to be successful. This means that franchisors should have a continuous screening and interview process, carefully assessing whether candidates have the traits needed to succeed. If the screening process seems too easy and lacking in rigor, this could be a red flag indicating that the franchisor is not truly committed to the long-term success of their franchisees.
Each franchisor looks for different qualities, but some core characteristics are universally valued. Here are the four pillars I believe to be the backbone of successful franchisees, no matter the industry.
Key Traits of Successful Franchise Owners
1. Ability to Follow a System
Buying a franchise means buying into a proven system, and the success of the franchise depends on following this system meticulously. Franchisors provide a detailed, step-by-step research process that, if followed correctly, equips candidates with all the necessary information to make an informed decision.
Your ability to adhere to these guidelines ensures consistency and reliability, which are crucial for maintaining the franchise’s reputation and achieving your business goals.
2. Ability to Implement the System
While the franchisor can teach you the process, the execution is up to you. Are you punctual, professional, and reliable? Do you complete assigned tasks on time? Are you professional? Do you do what you say?
Self-motivation and the ability to keep the process moving forward are crucial. Franchisors look for individuals who demonstrate a strong work ethic, as this directly impacts operational efficiency and customer satisfaction. Those who procrastinate or move slowly are much less likely to succeed.
3. Relationship-Building Skills
The fear of being sold a franchise can cause candidates to withhold their excitement and avoid building relationships. However, this is actually counterproductive.
It’s important to show that you can be a strong leader, engage with the community, and build strong relationships with customers. If you struggle to build relationships during the research process, you will likely face similar challenges as a franchise owner.
People do business with those they like and trust, so demonstrating your ability to connect with others can significantly influence your success as a franchisee.
4. Grit, Resilience, and Toughness
The research process can be intimidating—everyone experiences moments of fear. The key is how you handle it. Do you dig in, ask more questions, and express your concerns? Or do you hide, run away, and give up?
Franchisors look for candidates who show resilience and perseverance, as these traits are essential for overcoming the challenges of franchise ownership. They want to ensure that you have the inner strength to navigate the inevitable ups and downs of running a business.
Understanding the Franchisor’s Business Model
In the beginning of the process, franchise companies collect a fee called a franchise fee. However, it is not their business model to make money on franchise fees—they may make a little, lose a little, or break even.
The business model of successful franchise companies is to select the best owners and train them well. As the franchisees’ gross revenues go up, the franchisor makes more money.
This revenue model incentivizes franchisors to select the best candidates, provide the best training, and continuously improve their systems.
This approach creates a win-win situation, fostering a collaborative environment where both franchisors and franchisees can achieve sustained growth and profitability. Focusing solely on selling franchise fees would undermine this model and hinder long-term success.
Are You Being Sold a Franchise?
You should never feel like you are being sold a franchise. Instead, you should feel like the franchisor is interviewing you thoroughly, asking tough questions, and monitoring your progress through the research process. How you perform during this process is a strong indicator of how successful you will be as a franchisee.
Additionally, pay attention to how the franchisor treats you during the research process. Are they punctual, organized, and communicative? Do they build a good relationship with you? Their behavior now is a reflection of how they will support you as a franchise owner.
Being selective and diligent in evaluating both the franchisor and yourself during the research process is critical. It ensures that you are not merely being sold a franchise but are entering into a mutually beneficial partnership aimed at long-term success. And I am right by your side to guide you. If you’re ready to set fear aside and start the journey, let’s connect!
